very important field of study its importance in every field of live.
It help theoretically as well as practically to in every aspect of life to
the person. some points are discussed about the
practically importance of economics.
To solve Economic
Majority of the countries are facing the economic problems like inflation,
adverse Balance of payments, unemployment etc. the study of economics not
only help to understand these problems but after analyzing the causes cure is
Our wants are unlimited and the means to satisfy these wants are limited so every
consumer tries to maximums satisfaction with limited income. The study of
economics tells how a consumer achieves equilibrium position and maximums
satisfaction with limited resources.
Productions process starts with the combination of four factors of production
.The entrepreneurs employs the rest three factors and pays reward to their
owners. His basic aims to maximize profits. Profits are the excess of total
revenue over total cost. An entrepreneur can maximize his profits by
diminishing cost and increasing revenue. The study of economics helps to
understand how a producer or an entrepreneur can maximize his revenue and
Knowledge of economics enables the statesmen to grasp the political problems
that face him. They have to face the problems whose causes are economic e.g.
Nationalization of industry, industrial and agricultural reforms, labor policy,
darkness, inflation and unemployment etc. especially in the modern world, the
study of economics is the key to success.
To labor leaders
Study of economics helps to understand the industrial situation. Major demand
of labor leaders is to enhance wages. Business undergoes changes e.g. boom,
depression. Study of economics enables the labor leader when to press his
demands strongly and went to yield gracefully.
To Finance Minister
The foremost duty of finance minister is to prepare the national budget. He
suggests new taxes or to increase the rates of old taxes to increase the
revenue receipts. To solve the economic problems economic planning is made. An
exemplary taxation system is suggested. For this purpose to knowledge of
economics his indispensable.
Study of economics helps to understand the principles of business organization.
The businessman can plan the business well and can easily grip the production
and marketing problems.
None of the persons can produce all the necessary goods and services him. He
has to depend on others. Excessive goods and services are exchanged. But to
understand how exchange of goods, services and currency takes place and how
prices of goods, services and currency are determined, study of economic is
By studying economics even and ordinary citizen is able to understand the
economic problems and can analyze and criticize the government policies in
better way and can give his opinion which might be useful.
A country is prosperous when it is economically developed and economic planning
is a tool of economic development. Without economic planning none of the
country can mobilize its resources and can utilize them properly. But to
understand what economic planning is and low it is beneficial we have to study
An underdeveloped countries can especially benefit from economics, because he
can compares his economy with the economics of developed countries and can
understand tat how they had solved the problems or poverty, unemployment,
adverse balance of payments and how they increase their national income, per
capital income and standard of living. Study of economics helps to solve the
above problems and to increase the development rate.
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